Google Unveils Axion: A Breakthrough AI Chip to Elevate Data Center Performance

Google claims the new chip is 30% better than existing general-purpose chips. It marks Google’s first chip designed to support AI in data centres.

Google has introduced its groundbreaking proprietary chip, Axion, showcasing a strategic move to decrease reliance on major chip manufacturers and solidify its position in the competitive AI sector. Axion is specifically designed to handle extensive datasets critical for AI applications and can be organized into clusters comprising thousands of chips to significantly boost performance.

Google claims that Axion CPUs surpass existing ‘general-purpose‘ chips by around 30%, signaling a strong push to support AI tasks within its data centers. This launch marks Google’s debut in producing AI-centric chips tailored for data center operations.

While customers of Alphabet’s subsidiary will gain access to Axion through Google’s cloud services later this year, the chip will not be available for direct purchase. Amin Vahdat, Google’s vice president overseeing proprietary chips, stressed a collaborative approach, aiming to expand the industry collectively rather than directly competing with longtime partners like Intel and Nvidia.In response to Google’s announcement, semiconductor giants such as Intel and Nvidia are ramping up their AI chip offerings. Intel recently unveiled Gaudi 3, set to be released in the third quarter, focusing on AI applications like training large language models such as ChatGPT. Meanwhile, Nvidia plans to launch its latest H100 chip later this year.

Despite a decline in Nvidia’s stock following Google’s chip reveal, the company has experienced substantial growth due to demand for its high-performance chips and is now facing increased competition from rivals like Google in the AI chip market.Following the news of Axion, Alphabet’s stock initially rose by 2.4%, reflecting investor confidence in Google’s strategic move into AI chips. However, gains moderated later in the day, with Alphabet’s stock closing up 1.28% at approximately $158. Google’s entry into the chip market signifies a significant shift in its AI strategy, likely to influence the broader semiconductor landscape and intensify competition among major players like Intel and Nvidia.

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